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How to Get the Most for Your Money

It can sometimes be difficult to find all
the money you want or need to put away at one time of year. Have you ever
experienced a mad scramble to find enough money to make a last minute RRSP
contribution? It's something that many of us have experienced at one time
or another, but it doesn't have to be that way.

Consider setting up a ScotiaMcLeod
Pre-Authorized Contribution Plan (PAC). With a PAC account you can make
regular, automatic investments in one or more mutual funds for your RRSP
or investment account. The contribution amounts can be as little as $100
per month and can be set up for a range of different periods (monthly,
quarterly, etc.). Not only is this method of saving easy and relatively
painless, but you benefit from the advantage of dollar cost averaging
throughout the year.

When you regularly contribute to a mutual
fund, you are automatically purchasing more units of the fund when the
price is low, and fewer units when the price high. Over time this can
actually reduce the average cost of the units that you own, and it takes
the guesswork out of trying to decide when is the right time to buy.

Consider if you bought units of Templeton
International Stock Fund every month. If you refer to the graph below you
will see that you would be averaging out your cost rather than trying to
time the market, and hopefully hitting it at the low. Pre-authorized
contributions or payroll
deductions (if applicable) can help you save a little bit at a time
rather than trying to come up with a large sum at the end of February.
Another benefit is that it puts your money to work earlier, so that you
can take advantage of the tax-free compounding available in your RRSP.

Contact us, or your employer, to see if
you are eligible to do payroll deductions; if not, we can set you up with
a 'PAC' plan. There are no fees to get involved.

10% Free Redeemable Units

Every year most fund companies allow 10%
of the units that you hold to be redeemed free of any deferred sales
charge. If there is a new fund you have been considering investing in, or
you have been looking to rebalance your portfolio and maximize your
foreign content, this option may be right for you. With the introduction
of the new 100% RRSP-Eligible Foreign Funds that allow you to go beyond
the 20% threshold, the free redemption may be just what you are looking
for.

Give
us a call and together we will see what funds meet your objectives and if
this redemption can benefit you. Please note that if you have already
redeemed or switched any funds in 1999 you may not be eligible for this
until January 2000. Please contact us for more details

Self-Directed
Registered Education Savings Plans

ScotiaMcLeod is now offering self-directed
RESPs that can be held within our firm, effective November 1st, 1999.

For clients who have RESPs with us
presently but are held at the fund company, these accounts will be
eligible for transfer after the RRSP season.

How they work

RESPs enable you to make contributions now
towards the cost of a child's future education. In some plans, you are
able to name multiple beneficiaries in one account, so you could hold one
RESP for your children, grandchildren, nieces or nephews. You can even
name yourself as a beneficiary!

Are the contributions tax-deductible?

The contributions themselves are not
tax-deductible, but the funds grow tax-sheltered in the plan until the
beneficiary begins their post-secondary education.

Currently, you can make contributions of
up to $4,000 a year, to a lifetime maximum of $42,000 over 21 years, per
beneficiary (who is typically taxed at a very low rate, if at all).

The contributor may have their
contributions returned to them at any time, tax-free, but they are not
replaceable in the plan.

What happens when it's time for the
beneficiary to make withdrawals?

When the beneficiary begins their
post-secondary education and is enrolled full-time at a qualified
institution, they can begin to withdraw.

These withdrawals are called Education
Assistance Payments (EAPs) and it's important to remember that they are
from the growth portion of the plan, and not from the original
contributions. The original contributions belong to the annuitant (the
contributor) during, and at the end of the plan. The beneficiary declares
the withdrawal of the growth of the plan as 'other income' on their tax
return.

Any other benefits?

The government offers a Canada Education
Savings Grant. The grant pays out up to 20% of the first $2,000 in RESP
contributions made on their behalf in any year, up until the year they
turn 18 to a lifetime maximum of $7,200. The CESG can be invested along
with the contributions, and can be used in the educational assistance
payments paid out to the beneficiary once they are pursuing higher
education, however, any unused CESG must be repaid to the government

Are they right for you?

There are two main factors to consider
when determining if RESPs are the right product for you.

Age of the beneficiaries: RESPs are
long-term savings vehicles. Since the withdrawals are from the growth
of the plan rather than the contributions themselves, it is in the
investor's best interest to let them grow for a greater length of
time. They are best suited for families with young children.

The likelihood of the beneficiaries
pursuing higher education: Although difficult to determine with young
children, it should always be a consideration.

Canada Savings Bonds

It's that time of year again! The
government of Canada is releasing its newest series of Canada Savings
Bonds and Canada Premium Bonds available for purchase. Please contact our
office for rates and availability.

Fund News

Although C.I. Mutual Funds and BPI Mutual
Funds have merged, switches are not yet available between the two fund
families. There have been fund manager changes to coincide with the recent
merger; they are as follows:

Wally Kusters has taken over BPI
Canadian Equity Value and BPI Income & Growth. Kevin Klassen has
left the C.I./BPI portfolio management team.

Stephen Jenkins, has replaced Andrew
Waight as manager of BPI Canadian Mid-Cap Fund.

Robert Lyon has taken over management
of C.I. Canadian Resource Fund.

Nandu Narayanan is now responsible for
BPI Asia Pacific Fund.

Other Fund News

Jim Goar of SVC O'Donnell, portfolio
manager of O'Donnell Growth Fund, has left the firm. Elizabeth Taylor
has joined the team as the new fund manager.

AIM Group of Funds have introduced
their new 100% RRSP-Eligible Foreign Funds.

® Registered trademark of The Bank of Nova Scotia, used under licence. ™ Trademark of The Bank of Nova Scotia, used under licence. Scotia Wealth Management™ consists of a range of financial services provided by The Bank of Nova Scotia (Scotiabank®); The Bank of Nova Scotia Trust Company (Scotiatrust®); Private Investment Counsel, a service of 1832 Asset Management L.P.; 1832 Asset Management U.S. Inc.; Scotia Wealth Insurance Services Inc.; and ScotiaMcLeod®, a division of Scotia Capital Inc. ("SCI"). Wealth advisory and brokerage services are provided by ScotiaMcLeod, a division of SCI. Insurance services are provided by Scotia Wealth Insurance Services Inc., the insurance subsidiary of SCI. When discussing life insurance products, ScotiaMcLeod advisors are acting as Life Underwriters (Financial Security Advisors in Québec) representing Scotia Wealth Insurance Services Inc. SCI is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

The Spiess McGlade Team is a personal trade name of Carl Spiess and Allan McGlade.